by The global Power Rental Market is estimated to be valued at US$ 6.19 Billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power rental market consists of rental power generator sets that provide backup power during power outages in various industries such as construction, mining, oil & gas, events etc. Rental power generators help end-users to meet their temporary or backup power needs without investing huge capital in purchasing generators.
Market key trends:
One of the key trends in the power rental market is growing demand from the construction industry. The construction industry consumes a large amount of power for operating heavy construction equipment and machinery. As construction activities increase globally, the requirement for temporary power also rises to power infrastructure development projects. This growing demand from the construction segment especially in developing economies across Africa and Asia-Pacific is expected to drive the power rental market during the forecast period.
SWOT Analysis
Strength: The power rental market offers flexible and easily scalable power solutions. It provides power during peak demand periods and also acts as backup during power outages.
Weakness: Rental power equipment have high operational and maintenance costs. Frequent transportation of heavy diesel generators also increases logistic costs.
Opportunity: Increasing investments in renewable energy industry will drive the demand for rental power. Emerging economies in Asia and Africa are expected to rely heavily on rental power due to lack of stable electricity grids.
Threats: Stringent emission norms regarding use of diesel generators can impact market growth. Investments in microgrid and energy storage technologies pose threats to rental power industry.
Key Takeaways
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing investment in renewable energy sector. Off-grid and decentralized renewable projects rely on rental power equipment during construction and early stages.
Regional analysis – North America dominated the power rental market in 2023 with a share of over 30%, owing to frequent power outages caused due to extreme weather in U.S. and Canada. Asia Pacific is expected to be the fastest growing market, driven by increasing construction activities and growing industrialization in China and India. Countries like Indonesia, Philippines and Vietnam are also relying majorly on rental power solutions.
Key players operating in the power rental market are Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC. The market is concentrated with top five players accounting for over 60% of market share. Increasing focus on expansion in developing regions through partnerships is a key strategy adopted by top players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
